The lime situation is finally improving after difficult months. Avocados are in the midst of a crisis, while mangoes and ginger are affected by logistical pressures and overlapping supply. Giorgio Donnarumma, sales manager of the Milan-based Nuovafrutta, reports an extremely fragmented and sensitive market in which the few signs of recovery, as in the case of limes, alternate with phases of strong weakness, as in the case of avocados. Logistic pressures, combined with increasing competition between origins, call for great caution when it comes to purchasing strategies and stock management.
Giorgio Donnarumma
Limes
After a long period of stagnation, the European lime market is showing concrete signs of recovery. Prices, which remained between €6 and €8 for the whole of June, with fluctuations mainly related to the size and quality of the Brazilian product, are now clearly on the up. "Starting from this weekend, we will definitely sell above €10, and close to €11, if not more, for the coming weeks. Thanks to a reduction in volumes coming in from Europe, the persistent hot weather, and the good summer consumption trend among bars, clubs, and beach resorts, the market has finally unlocked. For a product that is in chronic pain for 7-8 months a year, every positive window should be capitalised on."
© NuovafruttaBrazilian limes
The current purchase price is around €8.50, while sales can vary between €10 and €14 depending on the channel (wholesale, retail, H&R), a range that brings limes back to values that are finally sustainable for operators, after months of low margins and high competitive pressure.
Hass avocados: Slump expected, market still weak
The data on Hass avocados is less encouraging, as they have been free-falling for several weeks. Buying prices are between €5 and €6, with sales rarely exceeding €8. "We have been handling whole lorries at prices that do not even cover the cost of the boxes. The downward pressure is such that the market will be unsustainable at least until weeks 34-35, when the end of the Peruvian campaign should lighten the supply and allow a slow realignment."
© NuovafruttaSouth Africa's Pinkerton and Peru's Hass avocados
Small signs of an upturn can already be seen for grades 12 and 14, where demand at origin is increasing by €0.50. "South Africa is on the market with the end-of-season Pinkerton variety, but the quality is low on average, with a lot of waste. Purchase prices vary between €6 and €7.50, while sales are between €9 and €10. Limited volumes of Peruvian Fuerte are also available, of which a few volumes can be bought for €7 to 8."
Mangoes: Short-lived boom and reversal in progress
After 2-3 weeks of strong momentum in which mangoes delivered by ship reached purchase peaks of up to €10 (Tommy and Palmer varieties from Brazil), the trend is rapidly reversing.
© NuovafruttaBrazilian mango variety Tommy
The cause is "a crowding of product. Mangoes arrived by sea from Israel, overlapping with those from Senegal. In a saturated market, the real price is determined by the sales. This week's quotations have already dropped by about €1.50. Israel continues to ask for €7 FOB, but the product arrives in Europe at €7.50-8, levels that risk not being sustainable in the face of current demand."
Passion fruit: Physiological correction after a peak
A similar argument applies to passion fruit, which was sold for months at €20, but is now the subject of a gradual normalisation. "Some suppliers are still asking for €13-16, but the real price is around €10. Those who hold out will buy at those figures."
© Nuovafrutta
Passion fruit from Colombia
Plantain stable, cassava still very expensive
The plantain situation is more stable, with a regular market. "The product from Ecuador is around 27-28 per carton, Colombia around €30/carton. Nothing particularly abnormal."
© NuovafruttaColombian plantains under the Turbana and Fyffes brands
On the other hand, the situation for cassava is different, as prices are still very high due to the floods in Costa Rica last November that reduced the cultivated areas. A fall in prices is not expected before September."
© Nuovafrutta
Green plantain from Ecuador and cassava from Costa Rica
Ginger: China on the up, Brazil under pressure
As for ginger, the market is changing after two months of very low prices. "Containers arriving from China bought at CIF$16 for 10 kg and $8 for 5 kg are now being sold out. The new asking prices have already risen to $18 and $10-11, which will result in a higher cost for goods arriving between August and September."
After entering with high prices, Brazil has already seen a sharp drop. "Today, you can buy 13 kg packages for €20 in the Netherlands, which shows an overabundance of supply. I don't think Brazilian prices will rise again. A rise, if any, will come from China after the summer, due to logistics costs and structural delays on sea routes."
© NuovafruttaBrazilian and Chinese ginger
Logistics under stress: Up to 60 days for containers
Critical issues concerning logistics are weighing on all segments. "Containers bound for Europe via the Cape of Good Hope take on average 45 to 60 days due to the new traffic structure imposed by the crisis in the Red Sea. Intermediate stops and chain delays make arrival times unpredictable, with direct effects on planning and warehouse rotation," concludes Donnarumma.
Images provided by Giorgio Donnarumma
For more information:
Nuovafrutta
Via Cesare Lombroso 54
20137 Milan - Italy
[email protected]
